Compliance Pressure Mounts as Japan Enforces Crypto Rules

[etfs]

Japan’s Financial Services Agency has intensified enforcement against offshore crypto exchanges, prompting Bybit to phase out services for local residents. Earlier in 2025, the FSA asked Apple and Google to remove apps from unregistered exchanges, signaling a tougher stance on compliance.

While Japan advances crypto infrastructure—supporting stablecoins and Bitcoin mining—regulators remain cautious about consumer protection and systemic risk. Complex tax rules and compliance hurdles continue to influence investor participation, shaping how the market evolves going forward.